Thrifts and Mortgage Finance

Company Overview of Homeward Residential, Inc.

Company Overview

Homeward Residential, Inc. provides residential mortgage services to homeowners, mortgage lenders, and mortgage investors in the United States. It offers mortgage payments, home retention, and customer services; and accidental death insurance, life insurance, home membership/discount plans, disaster insurance, and identity theft programs through insurance companies. Homeward Residential, Inc. was formerly known as American Home Mortgage Servicing, Inc. and changed its name to Homeward Residential, Inc. in February 2012. The company was founded in 2008 and is based in Coppell, Texas with additional offices in Columbia, Maryland; Addison, Texas; Jacksonville, Florida; Mount Laurel, New Jersey;...

Homeward Residential, Inc. provides residential mortgage services to homeowners, mortgage lenders, and mortgage investors in the United States. It offers mortgage payments, home retention, and customer services; and accidental death insurance, life insurance, home membership/discount plans, disaster insurance, and identity theft programs through insurance companies. Homeward Residential, Inc. was formerly known as American Home Mortgage Servicing, Inc. and changed its name to Homeward Residential, Inc. in February 2012. The company was founded in 2008 and is based in Coppell, Texas with additional offices in Columbia, Maryland; Addison, Texas; Jacksonville, Florida; Mount Laurel, New Jersey; and Pune, India. Homeward Residential, Inc. operates as a subsidiary of Homeward Residential Holdings, Inc.

Homeward Residential, Inc. Key Developments

Attorney General Luther Strange announced a $2.1 billion national settlement with Ocwen Financial Corporation, and its subsidiary, Ocwen Loan Servicing, to address mortgage issues. The joint state-federal settlement was joined by 49 states, the District of Columbia and the Consumer Financial Protection Bureau (CFPB). The settlement terms address servicing misconduct by Ocwen, and two companies later acquired by Ocwen, Homeward Residential Inc. and Litton Home Servicing LP. According to a complaint being filed in the U.S. District Court for the District of Columbia, the misconduct resulted in premature and unauthorized foreclosures, violations of homeowners rights and protections, and the use of false and deceptive documents and affidavits, including robo-signing. The settlement with the mortgage servicer is the result of a civil law enforcement investigation and initiative that includes state Attorneys General, state mortgage regulators and the CFPB. Through a court order, the settlement holds Ocwen accountable for past mortgage servicing and foreclosure abuses, provides relief to homeowners, and stops future fraud and abuse. The issues in the Ocwen case are similar to the problems uncovered in previous mortgage servicing cases, and this settlement holds Ocwen accountable for their actions. Under the settlement, Ocwen agreed to $2 billion in first-lien principal reduction, and $125 million for cash payments to borrowers on nearly 185,000 foreclosed loans. In Alabama, Ocwen will provide about 1,817 troubled borrowers with an estimated $9.4 million in first lien principal reductions. An undetermined number of Alabama homeowners whose loans have already been foreclosed may be eligible for cash payments. The payment amount, which is contingent on the number of consumers who submit valid claims, is projected to exceed $1,000. Joseph A. Smith Jr., Monitor of the National Mortgage Settlement, also will oversee the Ocwen agreements implementation and compliance. Ocwen agreement highlights: Ocwen commits to $2 billion in first-lien principal reduction; Ocwen pays $125 million cash to borrowers associated with 183,984 foreclosed loans; Homeowners receive comprehensive new protections from new mortgage loan servicing and foreclosure standards. An independent monitor will oversee implementation of the settlement to ensure compliance. The government can pursue civil claims outside of the agreement, and any criminal case; borrowers and investors can pursue individual, institutional or class action cases regardless of the agreement. Ocwen pays $2.3 million for settlement administration costs. The final agreement, through a consent judgment, is being filed on December 19, 2013 in U.S. District Court in Washington, D.C. If approved by a judge, it will have the authority of a court order. Because of the complexity of the mortgage market and this agreement, which will span a three year period, in some cases Ocwen will contact borrowers directly regarding principal reductions.

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